Profligate spending in the past will now overwhelm the federal budget. Obama is likely to preside over the largest deficit and national debt in the history of the world. This cannot go on for long without inflation kicking in when the government spends money like there's no tomorrow.
"Confronted with a hugely expensive economic crisis, Democratic and Republican lawmakers alike have elected to pay the bill mainly by borrowing money rather than cutting spending or raising taxes. But while the borrowing is relatively inexpensive for the government in a weak economy, the cost will become a bigger burden as growth returns and interest rates rise.
In addition, outlays for Medicare and Social Security are expected to balloon as the first baby boomers reach full retirement age in the next three years.
“The next president will inherit a fiscal and economic mess of historic proportions,” said Senator Kent Conrad, Democrat of North Dakota and chairman of the Senate Budget Committee. “It will take years to dig our way out.”"
What sort of economic miracle can fix this massive government mess? None. We are a country in decline. What set of circumstances could make it different?
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